Wednesday, January 7, 2026

Volkswagen de México reaches agreement with union on 8.1% pay raise

German car manufacturer Volkswagen has averted a strike at its Mexican plant in the city of Puebla by agreeing to an 8.1% pay rise with the company’s union.

Volkswagen’s deal with the Independent Union of Workers of the Volkswagen Automotive Industry (Sitiavw) included both an 8.1% salary rise and a 0.5% increase to the workers’ savings fund.

Puebla's Volkswagen manufacturing plant
Puebla’s Volkswagen manufacturing plant, which has been in operation for 55 years. (Volkswagen México)

The agreement was reached after nearly 7,000 unionized workers called for a strike on Friday, having initially demanded a pay increase of 15.7% on Aug. 9.

“At Volkswagen de México we are convinced that dialogue is the vehicle to reach agreements like this, which protect the purchasing power of our staff in a post-pandemic environment that continues to present challenges for the economy and the automotive industry,” said Ricardo Guerrero, the company’s vice president of human resources.

The deal comes on the back of a 9% raise agreed in 2022, which workers at the plant initially rejected. It is the latest of several such deals made across Mexico’s automotive sector over the last year, in the context of high inflation.

In March, General Motors agreed to a 10% pay raise for workers at its pickup truck factory in Guanajuato, the first double-digit salary increase in the sector for many years. Independent unions also negotiated raises of 9.4% at Audi and 9% at Nissan.

Sitiavw representatives
Representatives of the Sitiavw union, who negotiated the pay increase for workers. (Centro Federal de Conciliación y Registro Laboral/X)

These successive pay increases reflect increased monitoring of Mexico’s labor unions since the country’s 2019 Labor Reform, which tightened protections on collective bargaining. The reform was a condition of Mexico’s entry into the United States-Mexico-Canada Trade Agreement (USMCA) free trade pact, and has also been hailed as an important advancement in Mexican labor policy.

Volkswagen is one of Mexico’s leading car manufacturers, producing 300,000 vehicles in the country in 2022. Its Puebla plant has been in operation for 55 years and is one of the company’s largest production centers.

“The willingness and openness shown by the negotiating commissions, together with the accompaniment of the officials of the Federal Center for Conciliation and Labor Registration, made it possible to conclude the process successfully,” Guerrero said.

With reports from Forbes and Investing

Have something to say? Paid Subscribers get all access to make & read comments.
Oil tanker

Why is Mexico suddenly Cuba’s biggest oil supplier?

1
The news that Mexico is the island nation's top oil supplier seems at odds with Trump's anti-Cuba agenda, but President Sheinbaum clarified Tuesday that shipment levels remain consistent with previous years.
telephone booth in operation

The CFE is bringing back the phone booth in rural Mexico

0
The new public phones operate simply: pick up the receiver, punch the number, talk, hang up. The major difference between the new ones and the old ones is that all calls are now free.
A woman and small girl hug wearing Venezuelan ball caps

Joy meets fear as the Venezuelan community processes Maduro’s capture from Mexico

As Venezuelans living in Mexico process news of Maduro's capture, their hopes and fears must exist alongside Mexicans' vocal condemnation, highlighting fundamentally different perspectives on what happened on Jan. 3.
BETA Version - Powered by Perplexity